EMAA OFFICIAL HOPES STATE POVERTY DECLINE WILL EXTEND TO REGION

Feeling richer?

A U.S. Commerce Department's Census Bureau report lists Missouri among the nation's leaders in both income growth and reduction in the poverty rate.

Robert Fulton, executive director of the East Missouri Action Agency, said he was unaware of such a dramatic improvement in the area.

"I was surprised to see the percentage of the poor in the population is under 10 percent," said Fulton, who is on the governor's task force for poverty control. "I wasn't aware of that kind of improvement. I hope it's true. I hope it's not a misprint."

The average income of Missouri households rose by 7.5 percent, or $2,287, between 1993-94 and 1994-95, said the Commerce Department. That represents the fourth highest income increase among the states. In addition, the number of Missourians living below the poverty level dropped 3.4 points, a reduction of more than 20 percent. Missouri tied Louisiana for the largest decrease in the poverty rate.

The East Missouri Action Agency is an organization that deals with job training, job placement and has an emergency fund that is accessible for preventing utility cutoffs in households that cannot make their electric or gas payments.

"The report might indicate that our economy is stronger than many of us thought in this area," he said. "The demands on the emergency fund for utility cut off is still high though. It's possible we failed to notice some clues that would indicate this kind of change."

If the Census Bureau's report is accurate, Fulton said, it might prompt some changes in both the way the EMAA is funded and the programs it will concentrate on providing.

"We might be missing the opportunity to get people into the job market," he said. "Instead of concentrating on job training we might move to focusing on job placement."

Federal, and some state, funding for many poverty-related programs is based on the poverty rate. A favorable change in Missouri's percentage might produce a change in funding.

According to the report, Missouri's median household income stands at $34,825, and the poverty rate is 9.4 percent. Only seven states posted a lower poverty rate.

"This survey reflects the hard work of this administration to establish Missouri as an economic leader, not only in the Midwest, but throughout the entire United States," Gov. Mel Carnahan said. "Now, with incomes well above the national average and a low rate of poverty, Missouri has an even bigger economic advantage over its competitors."

Fulton said the governor likes to take credit for some areas of the economic improvements that are outside the government's reach.

"I would hate to argue with the governor," he said, "but the governor brags on the drop in the welfare rolls. A decline in the welfare roll is an indicator of the health of the economy. It's just the employment situation getting better."